ISLAMABAD: In a major move to enhance revenue and curb illegal trade practices, the Federal Board of Revenue (FBR) has announced the launch of digital tracking of freight vehicles across Pakistan’s major highways.
A high-level meeting chaired by Prime Minister Shehbaz Sharif on Tuesday reviewed the new digital monitoring system designed to prevent sales tax evasion and reduce smuggling. FBR Chairman Rashid Mahmood Langrial briefed the participants on the initiative, revealing that freight vehicles will be equipped with e-tags and digital devices for real-time monitoring.
The digital tracking of freight vehicles will roll out in two phases, starting in one city before expanding nationwide. Officials emphasized that the initiative aims to digitize the economy, enhance transparency, and significantly boost tax revenue.
In addition to monitoring freight on highways, the system will also be deployed at key ports and airports for the automated tracking of imports and exports. This advanced monitoring network will integrate with local and international databases and leverage artificial intelligence to identify and prevent tax evasion and smuggling.
The meeting also reviewed FBR’s efforts to regulate the production sectors of tobacco, beverages, steel, and cement. These industries are being digitally monitored for sales tax compliance, similar to the existing system for the sugar industry. Monitoring has also been extended to hatcheries and poultry feed.
Prime Minister Sharif directed authorities to expedite the implementation of tax reforms, promising support to compliant taxpayers while warning of strict legal action against evaders.
The FBR has so far missed its revenue target by nearly Rs831 billion during the first 10 months of FY25. The board collected Rs9.3 trillion against the Rs10.13 trillion target, largely due to reduced import volumes and lower-than-expected inflation, which impacted sales tax collections.